Life Insurance Basics
What standard does New York's Regulation 187 apply to a producer's recommendation on a life policy or annuity?
Answer and explanation
Answer: A. Regulation 187 requires the transaction to be in the best interest of the consumer and to address that consumer's insurance needs and financial objectives at the time. It is a standard of conduct rather than a cheapest-product rule or a prior approval requirement.Source: New York Reg. 187, 11 NYCRR 224 — 11 NYCRR 224
More life insurance basics questions
- Who bears the investment risk in a variable life policy?
- Who owns, pays for, and benefits from key person life insurance?
- Whose interests may a producer weigh when making a recommendation under Regulation 187?
- Why can the human life value approach and the needs approach produce different amounts for the same client?
- Why does paying premium monthly usually cost more in total than paying annually?
- Why does paying premiums monthly cost more over a year than paying annually?
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